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Unlike regular paper, which is primarily made of wood pulp, Indian currency paper consists of a different fabric.
The RBI plays a pivotal role in managing currency in India, as outlined in various sections of the Reserve Bank of India Act.
The Indian rupee, a symbol of trust and economic strength, is not just a medium of exchange but also a marvel of sophisticated craftsmanship. While it may appear to be ordinary paper, Indian currency notes are made of a unique blend of materials that ensure durability, security, and resistance to counterfeiting.
What Is Currency Paper Made Up Of?
The paper currently being used for printing banknotes in India is made by using 100% cotton.
The Composition of Currency Paper
Unlike regular paper, which is primarily made of wood pulp, Indian currency paper consists of cotton. This composition gives the notes their distinctive texture, longevity, and resistance to tearing. The Reserve Bank of India (RBI) ensures that the material is of the highest quality to withstand frequent handling, folding, and exposure to various elements.
Why Cotton-Based Currency?
Cotton fibres make the currency paper:
- Durable: Indian banknotes can endure rough usage and remain intact for longer periods.
- Eco-Friendly: Being cotton-based, the notes are biodegradable, reducing environmental impact when discarded.
- Secure: The unique texture makes counterfeiting more challenging, adding an extra layer of security.
Special Features in Currency Paper
Indian currency notes incorporate several security features to help distinguish genuine notes from counterfeits. These include:
- Silver-Colored Security Thread: A machine-readable thread embedded in the note.
- RBI Seal and Governor’s Signature: Official markings for authenticity.
- See-Through Register: A design element that aligns perfectly when held against the light.
- Watermarks and Electrotype Watermark: Visible when the note is held up to the light.
- Micro Lettering: Tiny inscriptions visible under magnification.
- Latent Image: A hidden design visible only when viewed at an angle.
Additionally, the numerals on the note are printed with colour-shifting ink, appearing green when viewed flat and changing to blue when tilted.
Interestingly, other countries also use cotton-based materials for their currency. In the United States, for example, banknotes are composed of 25% linen and 75% cotton. This specialised paper is manufactured exclusively by Crane Currency in Dalton, Massachusetts, for the Bureau of Engraving and Printing, with access strictly restricted to ensure security.
A Symbol of Trust
Indian currency notes are not merely instruments of monetary transactions; they are carriers of history, security, and innovation. The choice of materials and the stringent production processes underscore the effort that goes into creating each rupee note, reflecting the pride and trust placed in India’s economy.
Role of the Reserve Bank of India in Currency Management
The RBI plays a pivotal role in managing currency in India, as outlined in various sections of the Reserve Bank of India Act.
Issuance of Banknotes:
Under Section 22 of the Act, the RBI holds the exclusive right to issue banknotes in India. The design, form, and material of these banknotes are finalized by the Central Government after considering recommendations from the RBI’s Central Board, as per Section 25 of the Act.
Planning and Supply:
The RBI estimates the annual requirement for banknotes, broken down by denominations, in consultation with the Central Government and other stakeholders. It places orders with currency printing presses for their production.
Ensuring Quality:
As part of its “Clean Note Policy,” the RBI ensures the circulation of good-quality banknotes. Notes returned from public circulation are carefully inspected. Those deemed fit are reissued, while soiled or damaged notes are destroyed to maintain the overall quality of currency in use.
Role in Coins:
The RBI’s involvement with coins is limited to their distribution. The design and minting of coins in various denominations are managed by the Government of India under the Coinage Act, 2011.
Through these measures, the RBI ensures a robust and secure currency management system, contributing to public confidence in the monetary framework.
What to Do If You Receive a Fake Note?
If you suspect that a currency note in your possession is counterfeit, take the following steps promptly:
Report to Authorities: Visit the nearest police station or bank branch to report the incident. Share all relevant details, such as the time, location, and description of the person or source from which you received the note.
Inform Your Bank: If the fake note was dispensed by an ATM, notify your bank immediately. They may guide you on the next steps or investigate the matter further.
Avoid attempting to use or pass on the counterfeit note, as doing so is illegal. Instead, let the authorities handle the situation to prevent the circulation of fake currency.
